fairly definitive statement, page-5

We are fully funded to production. That's true. But still dilution ahead. You have the Celtic $1mil converting in May. But atleast that saves interest.

You do have to question why the warrants were originally for 2c, until Noble requested they be reduced to 1.2c

From a cashflow persective KAB are still short on funds. We have $4mil. No more. $1.5mil is spoken for - the plant. That leaves $2.5mil

The drawdown is delayed by about 1month. The plant takes 3months from order to fully commissioned. So the March 31 first production will now be 1month later, or near enough.

If you work out the expected revenue for the 8months in 2013, ie 2,500t/month ramped up to 10,000t/month by Dec 2013.

Then subtract 9% of the $4mil and 10% of the $1.5mil, other working capital, opex, etc. It looks like it's cutting it fine. We cant draw down on tranche to for a minimum of 15months.

The grades are also concerning. We have two 55% trial shipments. But all subsequent trenching has been significantly lower.

For the latest grades view 31/8/2012 ann for the Chowa pit.

For the Peco pit see the 24th Dec 2012 ann.

The average grade is much lower.

I'd count on Celtic dilution and a bit more in 2H of 2013, but hopefully at higher sp?